GBP/USD Bows to $1.27000 Level, Scrutinize Next Indicator!

<p>&nbsp;The Pound currency was seen to move gloomy after the end of last week's Bank of England (BOE) policy meeting with a surprise interest rate hike of 50 basis points.</p><p><br /></p><p>Although the Pound is expected to strengthen in the period ahead, UK manufacturing and services PMI data published for June further limited the momentum.</p><p><br /></p><p>The pound was gloomy at the end of the week due to lackluster data readings, as was the case with the Euro and US dollar.</p><p><br /></p><p><br /></p><p><br /></p><p>On the movement on the chart of the GBP/USD currency pair, it can be observed that the price is hovering slowly above the 1.27000 level which is a support when making the price.</p><p><br /></p><p>1.27000 is an important RBS (resistance become support) zone to evaluate and investors are indeed waiting for a price reaction in that area.</p><p><br /></p><p>There was a slow price bounce until it continued at the opening of trading earlier this week.</p><p><br /></p><p>The price movement in the Asian session shows the price testing the Moving Average 50 (MA50) barrier on the 1-hour time frame which is an indication of a bearish trend for the price.</p><p><br /></p><p><br /></p><p>If the price manages to break through the MA50, the price increase is likely to continue towards the resistance level reached last week around 1.28400.</p><p><br /></p><p>Overcoming the rise to higher levels would expect the price to test the height zone at 1.29000 in addition to breaking the latest record high since April 2022.</p><p><br /></p><p>However if the MA50 barrier fails to be crossed and the price bounces back down, the RBS 1.27000 zone will be watched for an indication of further movement.</p><p><br /></p><p>If the price finally breaks through that important zone, it will be a signal that a bearish trend is about to begin.</p><p><br /></p><p>The initial drop target is seen to be around 1.26000 before the price that continues the drop will go to around the 1.25000 concentration zone.</p>